Supplies and More, a firm specializing in building materials, engaged in the following four transactions during 2014:
(1) purchased and received inventory costing $18,600 million, of which $12,000 million was on account with the rest paid in cash;
(2) purchased a machine for $4,800 million with cash;
(3) issued 2,000 shares of common stock for $6,000 million in cash;
(4) issued shares of common stock to its suppliers for the remaining amount due on purchases of inventory.
REQUIRED:
Indicate the effects of each of these four transactions on the balance sheet equation.Supplies and More applies U.S.GAAP financial reporting standards and reports its results in millions of U.S.dollars ($).
Shareholders'

Question

Quizplus · Accepted Answer

The Answer of Supplies and More, a firm specializing in building materials, engaged in the following four transactions during 2014:
(1) purchased and received inventory costing $18,600 million, of which $12,000 million was on account with the rest paid in cash;
(2) purchased a machine for $4,800 million with cash;
(3) issued 2,000 shares of common stock for $6,000 million in cash;
(4) issued shares of common stock to its suppliers for the remaining amount due on purchases of inventory.
REQUIRED:
Indicate the effects of each of these four transactions on the balance sheet equation.Supplies and More applies U.S.GAAP financial reporting standards and reports its results in millions of U.S.dollars ($).
Shareholders'

Supplies and More, a Firm Specializing in Building Materials, Engaged